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Suppose the stock market has been rising rapidly for the past five years

Economics

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Suppose the stock market has been rising rapidly for the past five years. Some economists argue that the stock market has become "overvalued" and thus a "crash" is imminent. AS a. A rising stock market affects aggregate demand primarily through a wealth effect upon consumption Use the 3-point curve drawing tool to show this effect in the accompanying AD/AS diagram. Carefully follow the instructions above, and only draw the required object. Price Level AD Y Real GDP